Business 101 (Chapter 6)
True or false: The principles of management are similar for a small neighborhood business and a giant global firm.
True
____ percent of the nation's new jobs are in small businesses
65
Micropreneurs
Entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers them a balanced lifestyle
What advice would established entrepreneurs likely tell a new, would-be business owner? Multiple choice question. You don't need to hire an accountant if you can balance a checkbook. Make sure your business is not undercapitalized. Employees are plentiful; focus on your product instead. Location isn't as important as everyone says.
Make sure your business is not undercapitalized.
The section of the business plan that is designed to initially captivate and energize a potential financial investor would be the
executive summary
What are the three main factors addressed in a business plan?
goals, plans, and metrics for success
elect all that apply Among the hurdles small businesses must overcome in starting to operate globally are: Multiple select question. understanding cultural differences difficulty finding financing bureaucratic paperwork many shippers available to start shipping more quickly
understanding cultural differences difficulty finding financing bureaucratic paperwork
What term is given to individuals or companies that invest in new businesses in exchange for partial ownership in those businesses? Multiple choice question. Investment advisers White knights Venture capitalists Finance brokers
venture capitalists
Small Business Administration (SBA)
A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.
Small business
A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts
Business plan
A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s).
Which businesses need to write business plans?
All businesses should write business plans in order to create a framework for success.
Select all that apply What two tasks are important to complete when writing a business plan? Multiple select question. calculate how much money you need to start develop a Gantt chart analyze the competition develop a vision that sets a cultural tone
Calculate how much money you need to start. Analyze the competition.
Select all that apply A good business plan is between 25 and 50 pages long and takes many months to write. A comprehensive business plan will include which three items? Multiple select question. Executive summary Bank analysis List of all competitors Company background Cover letter
Executive summary Company background Cover letter
Entities organized to deliver support services to businesses during startup phase of operation.
Incubator
Service Corps of Retired Executives (SCORE)
More than 11,000 volunteers from industry, trade associations, and education who counsel small business at no cost.
Enterprise zones
Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support
Select all that apply An inexpensive marketing research study may help you determine which of the following? Multiple select question. What is an effective strategy for reaching your target market How to lower the cost of your product or service Where to locate Whom to select as your target market
What is an effective strategy for reaching your target market Where to locate Whom to select as your target market
All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are: Multiple choice question. located in a specific region a country's population customers a market
a market
Small Business Investment Company (SBIC)
a program through which private investment companies licensed by the SBA lend money to small businesses
An Internet-based marketing strategy that rewards businesses or individuals for each visitor or customer they send to a website.
affiliate marketing
What is included in a business plan? Multiple choice question. a listing of all potential funding contacts an analysis of the competition a public relations plan the trade secrets of the business operation
an analysis of the competition
What type of business relationship benefits both a trainee and a business owner and occurs when a trainee is hired to learn small-business management while assisting the owner in getting daily work done? Multiple choice question. enterprise zone sponsorship incubator apprenticeship
apprenticeship
Jason has prepared a comprehensive Blank______ which includes a cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix. Multiple choice question. business plan statement of operations vision statement action plan
business plan
Select all that apply All organizations require the following: Multiple select question. many employees capital planning information management
capital planning information management
Incubators
centers that offer new businesses low-cost offices with basic business services
Intrapreneurs
creative people who work as entrepreneurs within corporations Intrapreneurs use a company's existing resources to launch new products for the company
Geographic area in which business growth is encouraged by government through tax relief and other financial incentives.
enterprise zone
A(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product. Multiple choice question. creative franchise business entrepreneurial
entrepreneurial
Accepting the risk of starting and running a business.
entrepreneurship
Select all that apply Select the characteristics of an intrapreneur. Multiple select question. he or she generates profits by leveraging a firm's human financial and physical resources. someone who uses company's resources to launch new products a creative person who works within a corporation a person who assumes the risk of starting a business.
he or she generates profits by leveraging a firm's human financial and physical resources. someone who uses company's resources to launch new products a creative person who works within a corporation
According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of ___________ graduates
incubator
Since entrepreneurs can't compete with larger firms' pay and benefits, what are three ways they can motivate employees? Multiple select question. reduce employee empowerment maintain good employee relations provide more challenging opportunities to learn be respectful of employees' opinions increase employees' workload
maintain good employee relations provide more challenging opportunities to learn be respectful of employees' opinions
Select all that apply Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to Blank______. Multiple select question. travel to other area businesses lengthen their daily working hours manage customer records follow the daily sales and expenses
manage customer records follow the daily sales and expenses
Which section of the business plan details and outlines the authority structure that exists inside the company?
management plan
Classes on small business and entrepreneurship offered at a local community college offer prospective business owners the chance to Blank______. Multiple choice question. recruit instructors who will help write your business plan form a network of students who might be willing to invest in your business meet with experienced entrepreneurs to get advice and form support networks present business ideas to an instructor to see if it is worth pursuing
meet with experienced entrepreneurs to get advice and form support networks
A small business is defined as: one that meets certain standards of size in terms of employees or receipts one whose stock is traded on the open stock market one that is not dominant in its field one that is independently owned and operated
one that meets certain standards of size in terms of employees or receipts one that is not dominant in its field one that is independently owned and operated
Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to Blank______. Multiple choice question. employee requests for higher wages large increases in demand opportunities employee benefits needs for better benefits
opportunities
Market
people with unsatisfied wants and needs who have both the resources and the willingness to buy
Although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be primary concerns? Multiple choice question. planning and financing production and sales hiring and human resource development accounting and marketing
planning and financing
Some common causes of small business failure include: Multiple select question. starting with too little capital underpricing or overpricing goods or services no experience in that business or industry overestimating time needed to build the business
starting with too little capital underpricing or overpricing goods or services no experience in that business or industry
Select all that apply What two items are described in a business plan? Multiple select question. the target market the resources and qualifications of its owner(s) a demand forecast of employees the advantages of using a chosen bank
the target market the resources and qualifications of its owner(s)
Why should Mary Ann and Nana create a business plan?
to provide an overall road map of how to start the business and to notify competitors they will be entering the market